What Happens if My Ex Gets a Raise? Child Support and Alimony Modification in New Jersey
If your Ex receives a raise in income after your divorce, will you receive an increase in the child support or alimony paid to you or that you owe to your Ex?
We have to look at the facts before we answer this question.
To start the analysis, we look at whether the raise is a substantial and permanent change in financial circumstances. The court will then consider the income for both parties, the type of support involved, and the terms of the existing order or agreement. What happens next depends on whether you are dealing with child support or alimony and the circumstances of your particular case.
Does a Raise Automatically Change A Child Support or Alimony Order in NJ?
No, an Existing support order generally remains in effect until it is properly modified by the court.
There are two ways to modify a support order.
In the first option, the court will consider the request to modify the order for support when one of the parties applies by filing a written motion or application with the court and explains the change in financial circumstances. The other party will be given time to submit a written response explaining their position about why or why not the court should modifying the support amount. The judge will consider all the evidence submitted by the two sides and enter an order to increase or decrease the support or to not modify the support amount.
The second option is to negotiate with the other party, and both people sign a written agreement for the new amount of support to be paid. They file the agreement with the court making it a court order.
When a party asks the court to modify support because there is a substantial and permanent change in financial circumstances for one or both parties, New Jersey courts generally compare each party’s current financial circumstances with those that existed when support was last established or modified. This is commonly referred to as the changed circumstances standard, which comes from the New Jersey Supreme Court’s decision in Lepis v. Lepis, 83 N.J. 139 (1980).
How Does an Ex’s Raise Affect Child Support in NJ?
Child support is generally calculated using the New Jersey Child Support Guidelines and both parents’ current incomes will be used to conduct the calculation. Along with the Guidelines the court must consider a number of factors, including:
- The number of children in the family and their ages
- The amount of overnight parenting time each parent spends with the children
- The amount a parent’s income increased or decreased
- Changes in parenting time
- Changes in child-care expenses
- Changes in health-insurance costs for the children
- Bonuses, commissions, overtime, company cars provided by a party’s employer or other forms of compensation
- Other significant financial changes that affect the child support calculation
There is no specific percentage increase in income that automatically results in a change in child support. Instead, the court looks at the financial circumstances of both parents and applies the Child Support Guidelines when appropriate.
It is also important to remember that the income of the parent receiving child support is considered as well. Therefore, if that parent receives a substantial increase in income, the change may also affect to the outcome.
What If the Parents’ Income Is Above the Child Support Guidelines?
To utilize the Child Support Guidelines, the first consideration is how much combined net weekly income the parents earn. This means that the court will add together the weekly income of both parents after deducting standard income taxes. The current New Jersey Child Support Guidelines apply to combined net income of up to $3,600 per week.
If the parents’ combined net income is more than $3,600 per week, generally, the court uses the Guidelines to calculate the basic child support amount based on the first $3,600 of combined net income. The court may then consider whether additional support is appropriate based on the children’s needs, the history of expenses paid out on behalf of the children and the financial circumstances of both parents.
When Does a Child Support Modification Take Effect?
If you believe your child support should be changed, timing matters.
Under N.J.S.A. 2A:17-56.23a, child support can be modified starting on the date the application or motion was filed with the court.
It is also important to remember that an existing support order remains in effect until it is changed. If your circumstances have changed, you generally should not simply reduce or stop your court-ordered payments on your own. Doing so can result in unpaid support and arrears.
How Does an Ex’s Raise Affect Alimony in New Jersey?
Alimony works differently from child support.
There are no alimony guidelines to apply when recalculating alimony.
If you are seeking an alimony modification in New Jersey, you generally must establish changed circumstances. The court will then consider the circumstances of both parties and the applicable factors under New Jersey’s alimony statute, N.J.S.A. 2A:34-23, including:
- The actual need and ability of the parties to pay
- The duration of the marriage or civil union
- The age, physical and emotional health of the parties
- The standard of living established during the marriage or civil union and whether each party can maintain a standard of living reasonably comparable to that enjoyed during the marriage
- The education level and/or vocational skills of each party
- The length of time a party is out of the job market
- The parent responsibilities for the children
- The need for education or training to enable the party seeking alimony to return or enter the work force
- The history of contributions by both parties to the marriage or civil union including financial and non-financial contributions
- The equitable distribution received by each party and the current asset situation for each party
- The availability of investment income for each party
- Tax issues for each party arising from the payment or receipt of alimony
- The amount, duration and nature of interim support paid while the divorce is pending
- Other factors the court may deem relevant
What If My Ex Gets a Raise While I Receive Alimony?
If your former spouse receives a significant raise, that does not automatically mean that you are entitled to more alimony.
You generally must show that there are changed circumstances that support an increase in the alimony payment. Depending on the facts of your case, the court may consider your financial needs, your former spouse’s ability to pay, the marital standard of living, and other applicable factors.
The marital standard of living can be particularly important in an alimony analysis. The New Jersey Supreme Court addressed this issue in Crews v. Crews, 164 N.J. 11 (2000).
The reverse situation can also occur. If the person receiving alimony experiences a significant increase in income, that change may be relevant to a request to downward modify alimony they receive. The court will consider the circumstances of both parties and the applicable factors under New Jersey law to determine if there should be an increase, decrease or maintain the status quo for alimony.
In other words, a raise can be important when determining whether alimony should be modified, but a raise by itself does not automatically change the amount of alimony.
Why Does My Divorce Agreement Matter?
Before asking the court to modify support, it is important to review your Judgment of Divorce and Marital Settlement Agreement.
The language of your agreement may affect whether support can be modified and how a change in income is treated. Often in divorce cases, the parties include specific language about if and when alimony may be modified so it is important to review the divorce settlement agreement.
The type of alimony also matters. For example, New Jersey law specifically provides that reimbursement alimony is not subject to modification. Other types of alimony may be subject to modification depending on the circumstances and the terms of the agreement. These other types of alimony include: pendente lite alimony; open durational alimony; limited duration alimony; and rehabilitative alimony.
Your agreement may also contain provisions addressing other types of income or changes such as bonuses, commissions, investment income, future changes in income, future disability or retirement. That is why it is important to look at the actual language of your divorce agreement before assuming that a raise will—or will not—affect your support obligation.
What Do I Need to Show to Modify Child Support or Alimony?
Financial documentation is an important part of a support modification.
Depending on your circumstances, you may need documents such as:
- Current and prior Case Information Statements
- Pay stubs
- W-2s or 1099s
- Recent tax returns
- Documentation of a raise or promotion
- Employment agreements
- Records of bonuses, overtime, or commissions
- Documentation showing when the financial change occurred
- A certification explaining the change in circumstances
If your Ex received a raise, for example, documentation showing the amount and timing of the increase may be important.
Bonuses, commissions, overtime, and other compensation may also be relevant, depending on the circumstances and the history of that compensation.
The goal is to give the court a clear picture of what has changed and how that change affects the financial circumstances of both parties.
If you do not have documentation, for example, about your Ex’s salary increase, you can present the information you do have to the court and request that the court order your Ex to turn over his financial documents to you and the court. In some case this demand for documentation will be addressed by the court through formal discovery.
Talk to a New Jersey Family Law Attorney
If your Ex has received a substantial raise you may want to have your existing support order for alimony and/or child support, as well as your divorce agreement reviewed. These financial issues can dramatically impact your life and children’s lives for many years to come.
A New Jersey family law attorney can look at the circumstances of your case, explain whether a modification may be appropriate, and help you understand what financial information may be needed.
For Bergen County residents, Herbert & Weiss, LLP can review your circumstances and discuss the options available in your family law matter.
Call (201)440-6300 or [contact link] to schedule a consultation.
This article is general information, not legal advice, and reading it does not create an attorney-client relationship. Every case is different, and the outcome of a child support or alimony modification depends on the specific facts, the existing order or agreement, and applicable New Jersey law.
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